please help

Labor

7. Provide one possible explanation how the Parent can be more productive when considering labor productivity in units per hour, but the subsidiary is more productive in units per dollar.)

Parent Equipment Purchase (Part

#1)

8. Assume purchase of new equipment at an incremental, one-time fixed cost of $1,500,000 resulting in a reduction in labor hours to 30,000, a reduction in Equipment Hours to 100,000, and a reduction of Equipment Costs to $1,248,000 with all other

costs remaining the same. Change the appropriate values in column F above. Answer the questions below by comparing the new productivity value in cells D18 through D23 to the values you calculated on the "Productivity Calculations" worksheet.

For example, if the value in D18 on this worksheet (Labor Productivity in units/labor hour) is less than the value for Labor Productivity in units/labor hour for the Parent operations on the "Productivity Calculations" worksheet, then choose "decreased"

Productivity Measure

Labor Productivity in terms of

units/labor hour______

Labor Productivity in terms of

units/labor $_______

Materials Productivity in terms of

units/Materials Cost (S)_______

Equipment Productivity in terms of

units/hour_______

Equipment Productivity in terms of

units/$_______

Total Factor Productivity in terms of

units/S_______

Choose the correct answer for

each productivity calculation

Parent Equipment Purchase (Part

#2)

9. Calculate Total Revenue prior to any equipment changes using data in cells C6 through C14 above.

The formula for Profit is Total Revenue - Total Costs

The formula for Total Revenue is Total Units Sold * Selling Price per Unit

Pre Equipment Purchase Total Profit____

Post Equipment Purchase Total Profit_____

10. Summarize your observations concerning how the potential new equipment purchase will impact each of the productivity values and total revenue. Provide a recommendation whether to purchase the equipment and also provide supporting

evidence for your recommendation.

Productivity Analpsis Assignment Tawal - 55 points: Productivey Calculation Tab {30 points) * What-lf Analyah Tab (25 pointa\} Total =55 points: Productivity Calcula